Liquidating loan self

If that does not cover the debt, they will recoup the balance from the company’s remaining liquid assets, if any. These include bondholders, the government (if it is owed taxes) and employees (if they are owed unpaid wages or other obligations).

You will be required to come up with the cash to pay off the loan, or obtain a new loan by refinancing to pay the outstanding debt.

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seasonal loan that is used to pay for a temporary increase in accounts receivable or inventory.

That means the amortization period matches the term of the loan. Sometimes, however, the amortization period will be longer than the term.

If you have a 30-year fixed mortgage loan, then both your amortization and your term are for 30 years. An example would be a loan that is amortized over 30 years, but matures after 10 years.

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